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Bill C-41

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RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to amend the statute law in relation to veterans' benefits''.

SUMMARY

This enactment amends various Acts govern-ing veterans' benefits. Specifically, it

    (a) amends the Civilian War-related Benefits Act to provide access - equal to that of armed forces veterans - to benefits under the Pension Act and the War Veterans Allowance Act, for civilian groups that served overseas closely with, or under analogous conditions to, the wartime forces, namely,

      (i) the Newfoundland Overseas Forestry Unit,

      (ii) the Corps of (Civilian) Canadian Fire Fighters for Service in the United Kingdom,

      (iii) nursing aids and other members of the Canadian Red Cross and St. John's Ambulance who served in the Voluntary Aid Detachment of the First World War or as overseas welfare workers of the Second World War and the Korean War, and

      (iv) Ferry Command personnel;

    (b) amends the Pension Act to allow Canadian Forces members in the regular force who have service-related disabilities to receive disability pensions while still serving, thereby ensuring equality with members whose disabilities arose in special duty area service (i.e. peacekeeping) and reserve force service;

    (c) permits veteran disability pensioners who are married to, or living common-law with, each other to both receive the married rate;

    (d) extends remission authority to all types of overpayments of veterans' benefits, while improving the ability to collect without causing hardship;

    (e) reformulates the provisions governing the assessment of outside disability benefits (e.g. workers' compensation, United Nations disability compensation, court-awarded damages for personal injury);

    (f) provides for a one-year continuation of a deceased veteran's pension to the guardian of the veteran's orphaned children;

    (g) changes the pension indexation formula to accommodate declines in the Consumer Price Index;

    (h) consolidates the provisions relating to service in special duty areas (i.e. peacekeeping), as well as those relating to Korean War service, directly into the Pension Act;

    (i) clarifies the rules governing the exchange and use of client information, both within the Department of Veterans Affairs and between the Department of Veterans Affairs and other departments;

    (j) protects client information from having to be disclosed by public servants in non-criminal, non-appellate legal proceedings;

    (k) reformulates the provisions governing the amount of income support under the War Veterans Allowance Act when income has declined since the previous year;

    (l) allows compassionate awards to be continued to survivors without the necessity of a high-level re-adjudication;

    (m) makes organizational changes in the veterans' land program;

    (n) deletes penal provisions from veterans' legislation where the provisions are either unnecessary or are substantially duplicated by the Criminal Code; and

    (o) makes technical housekeeping changes to clarify regulation-making authorities, improve wording, ensure the use of gender-neutral language in English, correct cross-references, correct the French name of the Department of Veterans Affairs, and repeal obsolete Acts and provisions.

EXPLANATORY NOTES

Civilian War-related Benefits Act

Clause 1: New.

Clause 2: Section 4 reads as follows:

4. Every department of the Government of Canada shall furnish the Minister with such information and material as the Minister may from time to time require for the purpose of considering applications for pensions, allowances and compensation under Parts I to X.

Clause 3: The heading before section 17 and sections 17 and 18 read as follows:

Supervisors

17. In respect of their service as supervisors rendered between the time of embarkation for service outside Canada and the termination of that service by the appropriate naval, army or air force authorities, pensions and allowances shall be awarded in accordance with the rates set out in Schedules I, II and III of the Pension Act to or in respect of supervisors who suffered injury or disease or aggravation thereof resulting in disability or death attributable to or incurred during that service.

Helpers

18. In respect of their service as helpers rendered between the time of embarkation for service outside Canada and the termination of that service by the appropriate naval, army or air force authorities, pensions and allowances shall be awarded in accordance with the rates set out in Schedules I, II and III of the Pension Act to or in respect of helpers who suffered injury or disease or aggravation thereof resulting in disability or death attributable to or incurred during that service.

Clause 4: New.

Clause 5: Section 20 reads as follows:

20. Pensions and allowances shall be awarded in accordance with the rates set out in Schedules I, II and III of the Pension Act for members of the Canadian army forces or the Canadian Forces, to or in respect of members of the Corps of (Civilian) Canadian Fire Fighters for Service in the United Kingdom who suffered injury or disease or aggravation thereof resulting in disability or death attributable to or incurred during their service as members of the said Corps in accordance with the Pension Act.

Clause 6: New.

Clause 8: Part IX reads as follows:

PART IX

OVERSEAS WELFARE WORKERS

48. In this Part,

``enemy action or counteraction against the enemy'' includes extraordinary hazards occasioned by the War;

``Overseas Welfare Worker'' means a person who, under the auspices of the Canadian Red Cross Society or the St. John Ambulance Brigade of Canada, proceeded from Canada to serve as a welfare worker, nursing aid, ambulance or transport driver or member of the Overseas Headquarters Staff or in any other capacity and includes Orthopaedic Nurses selected by the Canadian Red Cross Society for service overseas with the Scottish Ministry of Health;

``service'' means service during the War as an Overseas Welfare Worker between the time of embarkation for service outside Canada and the termination of that service by the Canadian Red Cross Society, St. John Ambulance Brigade of Canada or the Scottish Ministry of Health.

49. Subject to this Part, pensions and allowances shall be awarded in accordance with the rates set out in Schedules I, II and III of the Pension Act to or in respect of Overseas Welfare Workers who, during service, suffered injury or disease or aggravation thereof resulting in disability or death when the injury or disease or aggravation thereof resulting in disability or death was a direct result of enemy action or counteraction against the enemy.

50. Where an Overseas Welfare Worker is in receipt of a disability pension under the Pension Act, the amount of pension payable under this Part shall not at any time exceed the amount by which the pension authorized by that Act for total disability exceeds the pension of which that person is in receipt under that Act.

51. Any pension awarded under this Part in respect of disability or death shall be reduced by the amount of any grant, allowance, compensation, pension or other payment of a like nature, payable in respect of the disability or death out of funds to which the Overseas Welfare Worker made no direct contribution.

Clause 9: Part X reads as follows:

PART X

CANADIAN CIVILIAN AIR CREW OF THE ROYAL AIR FORCE TRANSPORT COMMAND

52. In this Part,

``Civilian Member of Overseas Air Crew'' means a person, other than a member of the forces, who was employed by the Air Ministry of the United Kingdom to make trans-Atlantic flights ferrying aircraft from Canada, and who, at the commencement of that employment, was domiciled in Canada;

``enemy action or counteraction against the enemy'' includes extraordinary aerial or other hazards occasioned by the War;

``service'' means service during the War with Number 45 Wing of the Royal Air Force Transport Command, Number 45 Group of the Royal Air Force Ferry Command or the Atlantic Ferrying Organization, between the date of engagement for service outside Canada and the termination of that service by the Air Minister of the United Kingdom.

53. Where a Civilian Member of Overseas Air Crew, during service and as a direct result of enemy action or counteraction against the enemy, incurred an injury or disease or aggravation thereof resulting in serious disability or death and is in necessitous circumstances, or, in the case of death, a surviving spouse, child or children are in necessitous circumstances, or, there being no surviving spouse or children, a dependent parent or parents are in necessitous circumstances, the Minister may in the Minister's discretion award such pension and allowances, not exceeding the rates payable under Schedules I, II and III of the Pension Act, as the Minister may from time to time deem to be adequate.

54. Any award authorized under this Part in respect of disability or death shall be reduced by the amount of any grant, allowance, compensation, pension or other payment of a like nature, payable in respect of the disability or death out of public funds to which the Civilian Member of Overseas Air Crew made no direct contribution.

55. Whenever an application for pension is made under this Part, the Minister may, before awarding the pension, require the applicant to take all or any steps that may be necessary to obtain payment of any compensation that the applicant is entitled to receive from any person or under the laws of any province or country for the disability or death in respect of which the application for pension under this Part is made.

Clause 10: (1) The relevant portion of the definition ``civilian'' in subsection 56(1) read as follows:

``civilian'' means

      . . .

      (e) a person who was a member of the Corps of (Civilian) Canadian Fire Fighters for Service in the United Kingdom who served in the United Kingdom during World War II for a continuous period of at least six months,

      (f) a Canadian citizen, a Canadian national as defined in the Canadian Nationals Act, chapter 21 of the Revised Statutes of Canada, 1927, or a British subject domiciled in Newfoundland at the commencement of his qualifying service who served during World War I as a member of the Voluntary Aid Detachment of the British Red Cross

        (i) on the continent of Europe, or

        (ii) in the United Kingdom,

      (g) a person who during World War II

        (i) under the auspices of the Canadian Red Cross Society or the St. John Ambulance Brigade of Canada served overseas for a continuous period of at least six months as a welfare worker, nursing aid, ambulance or transport driver, member of the Overseas Headquarters Staff or in any other capacity, or

        (ii) was selected by the Canadian Red Cross Society for service overseas and served with the Scottish Ministry of Health as an orthopaedic nurse for a continuous period of at least six months,

      (h) a person who

        (i) served during World War II for a continuous period of at least six months with Number 45 Wing of the Royal Air Force Transport Command, Number 45 Group of the Royal Air Force Ferry Command or the Atlantic Ferrying Organization as an Air Crew member,

        (ii) during the period of service referred to in subparagraph (i) made at least one trans-oceanic flight, and

        (iii) was domiciled in Canada or Newfoundland at the commencement of the service,

      (i) a person who served in the United Kingdom with the Newfoundland Overseas Forestry Unit during World War II

        (i) for a period of more than six months, or

        (ii) for any period, if the service was terminated on medical grounds, and

(2) The relevant portion of subsection 56(2) reads as follows:

(2) For the purposes of this section,

    . . .

    (c) the United Nations military operations in Korea shall be deemed to have commenced on July 2, 1950 and to have terminated on July 27, 1953.

Department of Veterans Affairs Act

Clause 11: The relevant portion of section 4 reads as follows:

4. The powers, duties and functions of the Minister extend and apply to

    (a) the administration of such Acts of Parliament, and of such orders of the Governor in Council, as are not by law assigned to any other department of the Government of Canada or any Minister thereof, relating to the care, treatment, training or re-establishment in civil life of any person who served in the Canadian Forces or in the naval, army or air forces of Her Majesty, of any person who has otherwise engaged in pursuits relating to war, and of any other person designated by the Governor in Council, and to the care of the dependants of any such person; and

Clause 12: New.

Clause 13: (1) to (8) Paragraphs 5(c.1) and (e.1) are new. The relevant portion of section 5 reads as follows:

5. (1) Subject to the approval of the Governor in Council, the Minister may make such regulations as he may deem necessary and advisable

    (a) for the control and management of any hospital, workshop, home, school or other institution, owned, acquired or used by Her Majesty for the care, treatment or training of persons who served with the Canadian Forces, the naval, army or air forces of Her Majesty or any of Her Majesty's allies, and of the persons entitled to care, treatment or training therein, or who receive any benefit administered by the Minister;

    (b) respecting the care, treatment or training to be furnished in any hospital, workshop, home, school or elsewhere and providing for the care, treatment or training therein of persons entitled thereto, under any statute or order of the Governor in Council administered by the Minister;

    (c) for the marking or stamping of artificial limbs or appliances issued from the Department, and to prevent the removal or defacement of such stamps or marks or the use of any counterfeit thereof, and to prevent the purchase, sale, receiving or other disposal of such artificial limbs or appliances without the authority of the Minister; to forbid any false statement, suggestion or representation with respect to any artificial limbs, appliances or other goods manufactured in or for or issued from the Department;

    . . .

    (e) for prescribing the payments, grants or allowances, if any, to be made to persons or their dependants whenever such persons are being cared for under the provisions of this Act, either by medical treatment, training or otherwise;

    (f) with respect to reciprocal or other arrangements with the government of any country for

      (i) the care, treatment and training of persons who have served in the naval, army or air forces of any such government when cared for under the provisions of this Act, either by medical treatment, training or otherwise, or of their dependants,

      (ii) the issue of payments, grants or allowances to the persons mentioned in subparagraph (i),

      . . .

    (g) subject to such appropriations as Parliament may provide, for furnishing former members of the Canadian Forces, the naval, army or air forces of Her Majesty or any of Her Majesty's allies with the following services, advantages and financial aid:

      (i) sheltered employment, including after-care of the tuberculous,

      (ii) free transportation in Canada in the case of former members pensioned for total blindness or for a disability necessitating an escort when travelling,

      (iii) [Repealed, 1990, c. 43, s. 1]

      (iv) the treatment of former members classified as wholly incurable or chronically recurrent cases needing institutional care,

      (v) measures of unemployment relief to both former members and their dependants, and

      (vi) compensation in respect of industrial accidents;

    (g.1) subject to such appropriations as Parliament may provide, for providing, maintaining and replacing gravemarkers and for providing financial assistance towards the expenses of last sickness, funeral, burial and cremation, in respect of such former members of the Canadian Forces, such former members of the naval, army or air forces of Her Majesty or any of Her Majesty's allies, such former merchant navy personnel and such persons who have otherwise engaged in pursuits relating to war, as are eligible under the regulations, in cases where

      (i) the death of the eligible person was caused wholly or in part by a disability in respect of which an award was payable under the Pension Act or under any enactment incorporating that Act by reference,

      (ii) the eligible person was, at the time of death, in receipt of care or treatment in respect of a disability described in subparagraph (i),

      (iii) there are insufficient funds, as determined under the regulations, for the eligible person's funeral, burial or cremation, or

      . . .

    . . .

    (g.3) respecting

      (i) procedures and terms and conditions relating to the provision of any gravemarker, service or assistance referred to in paragraph (g.1), and

      (ii) the recovery or remission of any overpayment;

    . . .

    (h) for the administration and disposal of canteen funds;

    (i) for imposing punishment for contravention of any regulation by way of fine not exceeding two hundred dollars or imprisonment for a term not exceeding three months enforceable on summary conviction; and

Clause 14: Section 5.2 and the heading before it are new. Section 6 reads as follows:

6. The Minister may appoint a person or persons to hear and receive evidence with respect to any matter pertaining to the Department or the procedure of the Department under this Act, and such person or persons have authority to administer oaths and to hear and receive evidence under oath and to take affidavits in any part of Canada.

Clause 15: New.

Clause 16: New.

Pension Act

Clause 20: (1) and (2) The definitions ``award'' and ``treatment allowance'' in subsection 3(1) read as follows:

``award'' means a pension, compensation, allowance, bonus or grant payable under this Act;

``treatment allowance'' means an allowance paid or payable by the Department to or on behalf of a person while under treatment by the Department for a pensionable disability;

(3) The relevant portion of the definition ``member of the forces'' in subsection 3(1) reads as follows:

``member of the forces'' means

      (a) a person who has served in the Canadian Forces or in the naval, army or air forces of Canada or Newfoundland since the commencement of World War I, and

(4) The relevant portion of the definition ``service in a theatre of actual war'' in subsection 3(1) reads as follows:

``service in a theatre of actual war'' means

      . . .

      (b) any service as a member of the naval forces of Canada in the period described in paragraph (a) on the high seas or wherever contact has been made with hostile forces of the enemy, or in any other place at which the member has sustained injury or contracted disease directly by a hostile act of the enemy, and

(5) New.

Clause 21: (1) to (4) The relevant portion of subsection 21(1) reads as follows:

21. (1) In respect of military service rendered during World War I or World War II and subject to the exception contained in subsection (2),

    . . .

    (c) no deduction shall be made from the degree of actual disability of any member of the forces, who has served in a theatre of actual war during World War I or World War II, on account of any disability or disabling condition that existed in that member prior to his period of service in either of those Wars, but service in a theatre of actual war may only be counted for the purposes of this paragraph when it has been rendered in the particular war with reference to service in which pension has been awarded, and no pension shall be paid for a disability or disabling condition that, at the time the member became a member of the forces, was obvious or was recorded on medical examination prior to enlistment;

    . . .

    (g) subject to the exception in paragraph (c), where a pension has been awarded to a member of the forces who has served in a theatre of actual war during World War I or World War II, it shall be continued, increased, decreased or discontinued as if the entire disability had been incurred during service, but service in a theatre of actual war may only be counted for the purposes of this paragraph when it has been rendered in the particular war with reference to service in which the pension has been awarded;

    (h) where a member of the forces is in receipt of an additional pension under paragraph (a) or subsection (5) in respect of a spouse who is living with the member and the spouse dies, except where an award is payable under subsection 34(8), the additional pension in respect of the spouse shall continue to be paid for a period of one year from the end of the month in which the spouse died or, if an additional pension in respect of another spouse is awarded to the member commencing during that period, until the date that it so commences; and

    (i) where, in respect of a surviving spouse who was living with the member of the forces at the time of the member's death,

      (i) the pension payable under paragraph (b)

    is less than

      (ii) the aggregate of the basic pension and the additional pension for married members being paid to the member under paragraph (a) or subsection (5) at the time of the member's death,

    a pension equal to the amount described in subparagraph (ii) shall be paid to the surviving spouse in lieu of the pension payable under paragraph (b) for a period of one year commencing on the effective date of award as provided in section 56 (except that the words ``from the day following the date of his death'' in subparagraph 56(1)(a)(i) shall be read as ``from the first day of the month following the month of the member's death''), and thereafter a pension shall be paid to the surviving spouse in accordance with the rates set out in Schedule II.

(5) and (6) The relevant portion of subsection 21(2) reads as follows:

(2) In respect of military service rendered in the non-permanent active militia or in the reserve army during World War II and in respect of military service in peace time,

    . . .

    (c) where a member of the forces is in receipt of an additional pension under paragraph (a) or subsection (5) in respect of a spouse who is living with the member and the spouse dies, except where an award is payable under subsection 34(8), the additional pension in respect of the spouse shall continue to be paid for a period of one year from the end of the month in which the spouse died or, if an additional pension in respect of another spouse is awarded to the member commencing during that period, until the date that it so commences; and

    (d) where, in respect of a surviving spouse who was living with the member of the forces at the time of that member's death,

      (i) the pension payable under paragraph (b)

    is less than

      (ii) the aggregate of the basic pension and the additional pension for married members being paid to the member under paragraph (a) or subsection (5) at the time of the member's death,

    a pension equal to the amount described in subparagraph (ii) shall be paid to the surviving spouse in lieu of the pension payable under paragraph (b) for a period of one year commencing on the effective date of award as provided in section 56 (except that the words ``from the day following the date of his death'' in subparagraph 56(1)(a)(i) shall be read as ``from the first day of the month following the month of the member's death''), and thereafter a pension shall be paid to the surviving spouse in accordance with the rates set out in Schedule II.

(7) Subsection 21(4) reads as follows:

(4) No pension shall be paid to or in respect of a member of the forces described in subsection (2) while the member is serving as a member of the regular force.

(8) The relevant portion of subsection 21(5) reads as follows:

(5) In addition to any pension awarded under subsection (1) or (2), a member of the forces who

    (a) is eligible for a pension under paragraph (1)(a) or (2)(a) in respect of an injury or disease or aggravation thereof, or has suffered an injury or disease or aggravation thereof that would be pensionable thereunder if it had resulted in a disability, and

    . . .

shall, on application, be awarded a pension in accordance with the rates for basic and additional pension set out in Schedule I in respect of that part of the additional disability that is a consequence of that injury or disease or aggravation thereof.

(9) The relevant portion of subsection 21(7) reads as follows:

(7) Where the parties to a marriage are residing together and both are pensioners or members of the forces to whom pensions have been or may be awarded under this section,

    . . .

    (b) the additional pension for a married member of the forces may be paid in respect of one but not both of the spouses,

      (i) if their pensions are payable at the same rate, at that rate, and

      (ii) if their pensions are payable at different rates, at the rate for the member of the forces whose pension is payable at the higher rate; and

(10) Subsection 21(8) reads as follows:

(8) The Minister may require a pensioner to submit at such times and in such form as may be prescribed by the Minister a statutory or other declaration stating that

    (a) the pensioner is the person to whom the pension is payable,

    (b) any person in respect of whom the pensioner is in receipt of an additional pension is living, and

    (c) in any case where maintenance is relevant to the payment of pension, that the pensioner is maintaining or, where appropriate, is being maintained by the person in respect of whom the pensioner is in receipt of an additional pension,

and if the pensioner refuses or neglects to submit the statutory or other declaration, the Minister may suspend future payments of pension until it is received.

Clause 22: Sections 25 to 27 read as follows:

25. Where a disability, increase in disability or death for which pension is payable is caused under circumstances creating a legal liability on a person to pay damages therefor, if any amount is recovered and collected in respect of that liability by or on behalf of the person to or on behalf of whom the pension or increase in pension may be paid, the Minister, for the purpose of determining the amount of pension or increase in pension to be awarded, shall take into consideration any amount so recovered and collected in the manner hereinafter set out.

26. Where a disability, increase in disability or death for which pension is payable is caused under circumstances by reason of which compensation is payable in respect of the disability, increase in disability or death under the Merchant Seaman Compensation Act or the Government Employees Compensation Act, any provincial workers' compensation legislation or any other legislation of a similar nature, either in the place of, or as additional to, or apart altogether from any amount that is recovered or collected in respect thereof under section 25, and such compensation is awarded to or on behalf of any person to or on behalf of whom the pension or increase in pension may be paid, the Minister, for the purpose of determining the amount of pension or increase in pension to be awarded, shall take into consideration any compensation so awarded in the manner hereinafter set out.

27. (1) Where

    (a) one-half of any amount recovered or collected in the circumstances described in section 25 by a person described in that section,

    (b) the capitalized value of one-half of any compensation awarded under a law described in section 26 to a person described in that section, or

    (c) the aggregate of the amounts described in paragraphs (a) and (b)

is

    (d) greater than the capitalized value of the pension that might otherwise have been awarded to that person under this Act, no pension shall be paid, or

    (e) less than the capitalized value of the pension that might otherwise have been awarded to that person under this Act, a pension in an amount that, if capitalized, would equal the difference between the amounts described in paragraph (a), (b) or (c), as the case may be, and the capitalized value of the pension that might otherwise have been awarded to that person under this Act shall be paid.

(2) Where any amount is recovered and collected from Her Majesty in right of Canada in the circumstances described in section 25, the reference to ``one-half of any amount'' in paragraph (1)(a) shall be deemed to read ``the total amount''.

(3) If any amount recovered and collected in the circumstances described in section 25, or any part thereof, is paid to Her Majesty, a pension that, if capitalized, equals the amount so paid but is not in any event greater than the total pension that, apart from this section, would be payable under this Act, may be paid.

Clause 23: Subsection 29(2) reads as follows:

(2) Notwithstanding anything in this Act, but subject to subsections 38(3) and 72(5), any pension or allowance awarded or paid under this Act ceases to be payable on the first day of the month following the month of the death of the person to whom or in respect of whom any pension or allowance is paid.

Clause 24: Subsections 30(1) and (1.1) read as follows:

30. (1) No pension or allowance shall be assigned, charged, attached, anticipated, commuted or given as security, and the Minister may refuse to recognize any power of attorney granted by a pensioner with reference to the payment of a pension or an allowance.

(1.1) A pension or allowance is exempt from seizure and execution, either at law or in equity.

Clause 25: (1) Subsection 32(1) reads as follows:

32. (1) If, through any cause, an overpayment of a pension or an allowance has been or is made, the Minister may reduce, suspend or withdraw future payments of the pension or allowance until the amount of the reduction, suspension or withdrawal equals the amount of the overpayment.

(2) Subsection 32(3) reads as follows:

(3) Where a surviving spouse or other dependant of a deceased member of the forces retains any amount of the member's award paid after the last day of the month in which the member died, that amount may be deducted from any award granted to the spouse or other dependant.

Clause 26: (1) Subsection 34(6) reads as follows:

(6) The children of a deceased member of the forces who was, at the time of the death of the member, in receipt of a pension paid at a rate set out in one of classes one to eleven of Schedule I are entitled to a pension as if that member had died on military service, whether or not the death was attributable to that service.

(2) Subsection 34(10) reads as follows:

(10) Where a pension has been awarded to a minor child or minor children of a deceased member of the forces who had maintained a domestic establishment for the child or children and

    (a) who, at the time of death, was a widow or widower, or

    (b) whose surviving spouse does not receive a pension in respect of the death or receives only a portion of the pension,

a pension at a rate not exceeding that provided for a surviving spouse in Schedule II or determined pursuant to subsection 45(3), whichever rate is applicable, may be paid to a person who is competent to assume and who does assume the household duties and care of the child or children, for so long as there is a minor child in respect of whom a pension is being paid, and in those cases the pension payable in respect of those children shall continue to be paid.

Clause 27: Subsection 35(2) reads as follows:

(2) The assessment of the extent of a disability shall be based on the instructions and a table of disabilities to be made by the Minister for the guidance of physicians and surgeons making medical examinations for pension purposes.

Clause 28: Subsection 41(1) reads as follows:

41. (1) Where it appears to the Minister that a pensioner is

    (a) by reason of infirmity, illness or other cause, incapable of managing their own affairs, or

    (b) not maintaining any person that the pensioner has a legal obligation to maintain,

the Minister may direct that the pension payable to the pensioner be administered for the benefit of the pensioner or any person that the pensioner has a legal obligation to maintain, or both, by the Department or a person or agency selected by the Minister.

Clause 29: The relevant portion of subsection 45(2) reads as follows:

(2) Except as otherwise provided in this Act, the surviving spouse of a member of the forces who was, at the time of the member's death, in receipt of a pension paid at a rate set out in one of classes one to eleven of Schedule I is entitled to a pension as if that member had died on military service, whether or not the death was attributable to that service, if

Clause 30: The relevant portion of subsection 51(1) reads as follows:

51. (1) Except as otherwise provided in this Act, in any case where pension may be awarded under section 21 in respect of the death of a member of the forces, his surviving spouse is entitled to a pension if

Clause 31: (1) to (3) The relevant portion of subsection 56(1) reads as follows:

56. (1) Pensions awarded with respect to the death of a member of the forces shall be payable with effect as follows:

    (a) to or in respect of the member's surviving spouse or child, or to the member's parent or any person in place of a parent who was wholly or to a substantial extent maintained by the member at the time of the member's death, if paragraph (a.2) does not apply, and if an additional pension referred to in paragraph 21(1)(a) or (2)(a) was at the time of death being paid in respect of that person or that person is awarded a pension under paragraph 21(1)(b) or (2)(b),

      . . .

    (a.1) to or in respect of the member's surviving spouse or child, or to the member's parent or any person in place of a parent who was wholly or to a substantial extent maintained by the member at the time of the member's death, if paragraph (a.2) does not apply, and if no additional pension referred to in paragraph 21(1)(a) or (2)(a) was at the time of death being paid in respect of that person or that person is awarded a pension under section 48, from the later of

      . . .

    (a.2) to or in respect of the member's surviving spouse or child, or to the member's parent or any person in place of a parent who was wholly or to a substantial extent maintained by the member at the time of the member's death, if that person has received from the Canadian Forces, as a result of the member's death while still serving in the Canadian Forces, a payment or payments that are in substance a continuation of the member's pay or benefits, from the day following the last day of the period in respect of which the payment or payments were received;

Clause 32: The heading before section 60 and sections 60 to 63 read as follows:

Offences and Punishment

60. Any person who by false representation, personation or fraud obtains or attempts to obtain an award for himself or for any other person is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years or to a fine not exceeding one thousand dollars or to both.

61. (1) Any person who lends or gives or attempts to lend or give money or credit or any other consideration for the assignment, charging, attachment, anticipation, commutation or giving as security of an award is guilty of an indictable offence and liable to imprisonment for a term not exceeding one year or to a fine not exceeding five hundred dollars or to both.

(2) This section does not apply to loans, credits or consideration made or given without interest or other profit by the Canadian Patriotic Fund, or by any other patriotic or benevolent corporation, society or association approved by the Minister.

62. Any person who collects or attempts to collect any fees or charges for services rendered with respect to any application for an award, unless the amount of the fees or charges has been certified by the Commission to be fair and reasonable, is guilty of an indictable offence and liable to imprisonment for a term not exceeding six months or to a fine not exceeding five hundred dollars or to both.

63. Any person who wilfully makes any false statement under oath with reference to any award or application for an award is guilty of an indictable offence and liable to imprisonment for a term not exceeding six months or to a fine not exceeding five hundred dollars or to both.

Clause 33: Subsection 71.2(4) reads as follows:

(4) In the determination of the entitlement of a prisoner of war to compensation, the applicable provisions of Part III, excluding section 18, subsection 32(2) and sections 38 and 44 thereof, apply as if a reference therein to a member of the forces or a pensioner were a reference to a prisoner of war and as if a reference to a pension or a pension for disability were a reference to compensation.

Clause 34: Section 74 reads as follows:

74. In this Part,

    (a) a reference to the Consumer Price Index for any twelve month period means the average of the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that twelve month period; and

    (b) ``basic pension'' means the monthly basic pension payable under Schedule I to a Class 1 pensioner having the status of a single person.

Clause 35: The relevant portion of subsection 75(1) reads as follows:

75. (1) The basic pension shall be adjusted annually in the manner prescribed by regulation of the Governor in Council, so that the basic pension payable for a month in the following calendar year is the greater of

    (a) an amount equal to the product obtained by multiplying

      (i) the basic pension that would have been payable for that month if no adjustment had been made under this Part with respect to that following year,

    by

      (ii) the ratio that the Consumer Price Index for the twelve month period ending on the thirty-first day of October next before that following year bears to the Consumer Price Index for the twelve month period next before that twelve month period, and

Clause 36: New.

Clause 37: Section 77 reads as follows:

77. Where at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis or a new content basis, a corresponding adjustment shall be made in the Consumer Price Index for any twelve month period that is used for the purpose of calculating the amount of any pension or allowance that may be paid.

Clause 38: Sections 83 and 84 read as follows:

83. (1) The Minister may cancel a pension and recover any payments that have been made to a person under this Act if the pension was awarded as a result of fraud, misrepresentation or concealment of material facts on the part of the person.

(2) The Minister may ratify payments of a pension and continue payment of the pension in whole or in part if

    (a) the pension was awarded as a result of an error and not as a result of fraud, misrepresentation or concealment of material facts on the part of the applicant;

    (b) the pension has been paid for not less than five years; and

    (c) its cancellation or reduction would, in the opinion of the Minister, result in undue hardship to the pensioner.

84. An applicant who is dissatisfied with a decision made by the Minister under this Act or under subsection 34(5) of the Veterans Review and Appeal Board Act may apply to the Veterans Review and Appeal Board to review the decision.

Clause 39: Subsection 87(3) is new. Subsection 87(2) reads as follows:

(2) Any officer or employee of the Department authorized by the Minister may, in the course of their employment, administer oaths and take and receive affidavits, declarations and solemn affirmations for the purpose of the administration or enforcement of this Act or the regulations, and every person so authorized has, with respect to any such oath, affidavit, declaration or affirmation, the powers of a commissioner for taking affidavits.

Clause 40: Sections 91.1 and 93 are new. Section 92 reads as follows:

92. Every application, statement or notice required or permitted by this Act must be made or given in the form required by the Minister.

Clause 41: Sections 109.1 to 109.4 are new. Section 109 reads as follows:

109. Subject to any other Act of Parliament and any regulations made under any other Act of Parliament, the following persons may inspect the records of the Department and all material relating to an application under this Act:

    (a) the applicant or a representative of the applicant;

    (b) any medical adviser or other person, including any representative of a veterans' organization incorporated by or under an Act of Parliament, consulted by the applicant or a representative of the applicant; and

    (c) any member of the public service of Canada whose duties require the inspection of those records or that material.

Clause 42: Section 111 reads as follows:

111. No action or other proceeding lies against Her Majesty or against any officer, servant or agent of Her Majesty in respect of any injury or disease or aggravation thereof resulting in disability or death in any case where a pension is or may be awarded under this Act or any other Act in respect of the disability or death.

The Returned Soldiers' Insurance Act

Clause 45: New.

Royal Canadian Mounted Police Superannuation Act

Clause 46: Sections 32 to 32.2 read as follows:

32. (1) Subject to this Part, an award in accordance with the Pension Act shall be granted to or in respect of

    (a) any person to whom Part VI of the former Act applied at any time before April 1, 1960, who, either before or after that time, has suffered a disability or has died, or

    (b) any person who served in the Force at any time after March 31, 1960 as a contributor under Part I of this Act, and who has suffered a disability, either before or after that time, or has died,

in any case where the injury or disease or aggravation thereof resulting in the disability or death in respect of which the application for pension is made arose out of, or was directly connected with, his service in the Force.

32.1 (1) An award in accordance with the Pension Act shall be granted in respect of a member of the Force who is disabled or dies as a result of an injury or disease incurred while serving on a peacekeeping mission in a special duty area as though the service were military service rendered during World War I or World War II in a theatre of actual war.

(2) The Governor in Council may, by order,

    (a) designate as a special duty area any geographic area outside Canada where members of the Force serve as part of a peacekeeping mission and may be exposed to hazardous conditions not normally associated with service in peacetime; and

    (b) specify the commencement and termination dates for the period during which service in a special duty area qualifies a member of the Force for an award under subsection (1).

(3) In this section, ``special duty area'' means an area designated as a special duty area in an order made under the authority of Appropriation Act No. 10, 1964 or an order made under subsection (2).

32.2 All claims for pension under this Part shall be dealt with and adjudicated on in like manner as claims under the Pension Act, and all provisions of that Act not inconsistent with this Part apply with such modifications as the circumstances require to any claim under this Part.

Soldier Settlement Act

Clause 47: (1) Subsection 3(1) reads as follows:

3. (1) The Governor in Council may appoint an officer who shall be called the Director of Soldier Settlement who shall hold office during pleasure.

(2) Subsection 3(5) reads as follows:

(5) In the absence of the Director of Soldier Settlement, an officer named by the Minister shall have the powers and perform the duties of such Director.

Clause 48: Subsection 56(2) reads as follows:

2. Any person who resists or obstructs a Commissioner or officer or employee of the Board in the execution of his duties under this Act is guilty of an offence punishable on summary conviction by a fine not exceeding two hundred dollars, or to imprisonment for a term not exceeding six months.

Clause 49: The relevant portion of subsection 62(4) reads as follows:

4. If any such fee or commission or advance of price is paid by or to any such person, firm or corporation for any such services the following consequences shall ensue:-

    (a) Any person who in any affidavit made as required under subsection three of this section wilfully and knowingly states an untruth or suppresses the truth with respect to any matter which, pursuant to such subsection, he is required by way of such affidavit to make disclosure, shall be guilty of an indictable offence and be liable to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding five years, or to both such fine and such imprisonment; and

Clause 50: Section 63 reads as follows:

63. Any person who is guilty of any wilful breach or non-observance of any provision of this Act for which no penalty is specially provided shall be liable on summary conviction to a fine not exceeding one thousand dollars or to imprisonment for a term not exceeding one year, or to both such fine and such imprisonment.

2. Where any offence under this Act, whether by way of breach or of non-observance of any provision of this Act, is committed by a corporation, every officer or employee of the corporation, who has in any manner aided or participated in the commission of the offence, shall be personally liable as for the commission of such offence by him, and prosecution or conviction of any one officer or employee of the corporation shall not be a bar to prosecution or conviction of any other of them.

3. Every land inspector, field supervisor, official, employee or servant of the Board, and every agent engaged by the Board or acting for it or on its behalf, who knowingly or negligently makes any false or deceptive statement in any report, return, appraisal, statement or other document respecting or referring to any real or personal property, the subject matter of any inspection, appraisal or examination made for or on behalf of the Board or on the direction, instructions or request of the Board or of any of its officials, shall be guilty of an offence and liable on summary conviction to a fine not exceeding one thousand dollars, or to imprisonment for a term not exceeding one year, or to both such fine and imprisonment.

Clause 51: New. The relevant portion of section 64 reads as follows:

64. The Board may, with the approval of the Governor in Council, and subject to the provisions of this Act, make regulations, prescribing

Special Operators War Service Benefits Act

Clause 52: The heading before section 3 is new. Section 3 reads as follows:

3. Every special operator on the termination of his service as such shall be deemed

    (a) to be a ``veteran'' within the meaning and for the purposes of

      (i) the Veterans' Land Act,

      (ii) the Veterans Insurance Act,

      (iii) the Veterans Rehabilitation Act,

      (iv) the War Veterans Allowance Act, and

      (v) the Unemployment Insurance Act;

    (b) for the purposes of the Department of Veterans Affairs Act, to have served in the naval, army or air forces of His Majesty;

    (c) for the purposes of the Civil Service Act, to have served on active service overseas with the naval, army or air forces of His Majesty;

    (d) for the purposes of the Pension Act, to have been a member of the forces who performed service as a sergeant in the military forces in a theatre of actual war;

    (e) for the purposes of the Income War Tax Act, and during the period of his service as such, to have been a member of the Canadian Military Forces while in Canadian Active Service Forces and overseas on the strength of an Overseas Unit outside the Western Hemisphere;

    (f) for the purposes of the Reinstatement in Civil Employment Act, to have been on service in His Majesty's forces.

Clause 53: New.

Supervisors War Service Benefits Act

Clause 55: Sections 2 to 4 read as follows:

2. In this Act

    (a) ``supervisor'' means a duly selected and approved representative of

      (i) Canadian Legion War Services Inc.,

      (ii) the National Council of the Young Men's Christian Associations of Canada,

      (iii) Knights of Columbus Canadian Army Huts, or

      (iv) Salvation Army Canadian War Services,

    who was attached to and served with the naval, army or air forces of Canada outside the Western Hemisphere;

    (b) ``Western Hemisphere'' means the Continents of North and South America, the Islands adjacent thereto and the territorial waters thereof, including Newfoundland, Bermuda and the West Indies, but excluding Greenland, Iceland and the Aleutian Islands.

3. Subject to section 5, every supervisor, on the termination of his service as such, shall be deemed

    (a) to be a ``veteran'' within the meaning of

      (i) the Veterans' Land Act,

      (ii) the Veterans Insurance Act,

      (iii) the Veterans Rehabilitation Act,

      (iv) the War Veterans Allowance Act,

      (v) the Unemployment Insurance Act, and

      (vi) the Veterans' Business and Professional Loans Act;

    (b) for the purposes of the Department of Veterans Affairs Act, to have served in the naval, army or air forces of His Majesty;

    (c) for the purposes of the War Services Grants Act, to be a discharged member of the forces;

    (d) for the purposes of the Civil Service Act, to have served on active service overseas with the naval, army or air forces of His Majesty; and

    (e) for the purposes of the Pension Act, to have been a member of the forces who performed service as Captain (Army) in a theatre of actual war.

4. Every supervisor shall, upon termination of his service as such, if he became employed by Canadian Legion War Services Inc., The National Council of the Young Men's Christian Associations of Canada, Knights of Columbus Canadian Army Huts or Salvation Army Canadian War Services on or after the 1st day of September, 1939, be deemed to have been on service in His Majesty's forces for the purposes of the Reinstatement in Civil Employment Act, and for the purposes of that Act shall be deemed to have been accepted for service on the day he became so employed.

Veterans Benefit Act

Clause 56: Section 5 and the heading before it read as follows:

PENSION ACT

5. (1) Subject to subsection (2), the Pension Act applies to and in respect of

    (a) every person who was enrolled for the purpose of serving in the special force, in respect of his service in the Canadian Forces under the terms of such enrolment, and

    (b) every officer and non-commissioned member of the regular forces or reserve forces, in respect of his service in a theatre of operations on the strength of the special force,

as though such service were military service rendered during World War II within the meaning of that Act and as though the service described in the definition ``service in a theatre of actual war'' in section 2 of that Act included service in a theatre of operations on the strength of the special force.

(2) Subsection 12(2) of the said Act does not apply to or in respect of any death or disability for which a pension is payable by virtue of subsection (1) of this section.

Clause 57: (1) The relevant portion of subsection 9(1) reads as follows:

9. (1) Section 16 and subsection 17(5) of the Public Service Employment Act apply to every person who

(2) The relevant portion of subsection 9(2) reads as follows:

(2) Subsections 16(3) and 17(5) of the said Act apply to every person who

    (a) is in receipt of a pension under the Pension Act, having become eligible for such pension by virtue of section 5 of The Veterans Benefit Act, 1951, or by virtue of section 5 of this Act;

Veterans Insurance Act

Clause 58: New.

Veterans' Land Act

Clause 59: Subsection 3(1) reads as follows:

3. (1) The Governor in Council may appoint an officer to be known as The Director, The Veterans' Land Act (in this Act referred to as ``the Director'') who shall be responsible to the Minister and be paid such salary as may be fixed by the Governor in Council.

Clause 60: Sections 21.1 and 21.2 are new. Section 21 and the heading before it read as follows:

Advisory Boards

21. (1) There shall be one or more provincial advisory boards in each province appointed by the Governor in Council, each Board being comprised of three members; the chairperson shall be a judge of a county or district court of the province in which the board operates (or in the Province of Quebec a judge of the Court of Quebec, or in the Province of Ontario a judge of the Ontario Court (General Division), or in the Province of British Columbia a judge of the Supreme Court, or in the Province of Prince Edward Island or Newfoundland a judge of the Trial Division of the Supreme Court, or in the Province of New Brunswick, Manitoba, Alberta or Saskatchewan a judge of the Court of Queen's Bench), and one member shall be nominated by the Royal Canadian Legion.

(2) The Director, before taking any action or proceedings under subsection 22(1), shall, upon due notice to the veteran concerned, refer the question of rescission in any case to the appropriate advisory board in the province in which the land concerned is situated, for its consent as to whether the default in performance of the agreement warrants the Director in exercising the powers given him under the said subsection or as to the remedial conditions to be fulfilled by the veteran, in default of compliance with which rescission of the agreement may ensue.

(3) Notwithstanding subsection (2), where the Director is of the opinion that it is impracticable to refer the question of the rescission of an agreement with a veteran to an advisory board in the province in which the land concerned is situated, the Director may, upon due notice to the veteran concerned, refer the question of rescission to the appropriate advisory board in an adjacent province.

Clause 61: Subsections 22(1) to (3) read as follows:

22. (1) If any instalment mentioned in any agreement of sale under this Part is not punctually paid or if the veteran makes any other default in performance of the terms of such agreement, the Director may, subject to section 21, without any formal re-entry or retaking and without resort to proceedings in equity or at law, rescind such agreement, repossess and resell or otherwise deal with the property as authorized by this Part.

(2) The Director may with the consent of the veteran and without giving the notice required by subsection (4) rescind or otherwise terminate any contract made with the veteran under this Part.

(3) The effect of such rescission is to vest such property in the Director absolutely free and discharged of all rights and claims of the veteran and of all persons claiming or entitled to claim through or under him, for any estate in, or lien, charge or encumbrance upon or against such property.

Clause 62: Section 42 reads as follows:

42. Any person who resists or obstructs the Director or any officer or employee of the Director in the execution of his duties under this Part is guilty of an offence punishable on summary conviction by a fine not exceeding two hundred dollars, or by imprisonment for a term not exceeding six months.

Clause 63: Section 47 and the heading before it read as follows:

Offences and Penalties

47. (1) Any person who is guilty of any wilful breach or non-observance of any provision of this Part for which no penalty is specially provided is liable on summary conviction to a fine not exceeding one thousand dollars, or to imprisonment for a term not exceeding one year, or to both.

(2) Where any offence under this Part, whether by way of breach or of non-observance of any provision of this Part, is committed by a corporation, every officer or employee of the corporation, who has in any manner aided or participated in the commission of the offence, is personally liable as for the commission of such offence by him, and prosecution or conviction of any one officer or employee of the corporation is not a bar to prosecution or conviction of any other of them.

(3) Every land inspector, field supervisor, official, employee or servant of the Director, and every agent engaged by the Director or acting for him or on his behalf, who knowingly or negligently makes any false or deceptive statement in any report, return, appraisal, statement or other document respecting or referring to any real or personal property, the subject-matter of any inspection, appraisal or examination made for or on behalf of the Director or on the direction, instructions or request of the Director or of any of his officials, is guilty of an offence and liable on summary conviction to a fine not exceeding one thousand dollars, or to imprisonment for a term not exceeding one year, or to both.

Clause 64: Subsection 48(2) reads as follows:

(2) The Director may with the approval of the Minister make regulations authorizing persons named therein to exercise or perform with respect to such matters as may be specified therein, any of the powers or duties conferred or imposed by this Part on the Director.

Clause 65: New.

Veterans Review and Appeal Board Act

Clause 66: Subsection 19(2) reads as follows:

(2) The Chairperson, or any member to whom the Chairperson has delegated the authority, may refuse to establish a review panel to hear an application for review of a decision concerning the amount of an award under the Pension Act if the Chairperson or member, as the case may be, considers the application to be such that no reasonable review panel could dispose of it in a manner favourable to the applicant.

Clause 67: New.

War Service Grants Act

Clause 68: Sections 31 to 34 read as follows:

31. It is an offence for any person to charge or collect or to attempt to charge or collect, either directly or indirectly, any fee or other compensation for assisting in any manner a member of the forces or his dependant in obtaining any of the benefits to which he is entitled under this Act, punishable upon summary conviction by a fine not exceeding five hundred dollars or imprisonment not exceeding one year, or by both.

32. If any member uses a credit for any purpose not authorized under this Act or the regulations made thereunder, he is guilty of an offence and liable on summary conviction to a fine not exceeding two hundred dollars or to imprisonment for a term not exceeding two months, or to both.

33. Any person who

    (a) knowingly assists any member in using or attempting to use a credit for any purpose not authorized under this Act or the regulations,

    (b) counsels or abets any member in the use or the attempted use of a credit for any purpose not authorized under this Act or the regulations, or

    (c) knowingly makes any statement or gives any information which is false in any material particular for the purpose of having made available any credit to him or on his behalf,

is guilty of an offence and liable on summary conviction to a fine not exceeding two hundred dollars or to imprisonment for a term not exceeding three months, or to both.

34. Notwithstanding any law to the contrary, any complaint or information with respect to any violation of this Act may be made or laid within one year from the time when the matter of complaint or information arose.

War Veterans Allowance Act

Clause 69: (1) and (2) The definitions ``dependent child'' and ``payment review period'' in subsection 2(1) read as follows:

``dependent child'' means a child who is

      (a) under the age of eighteen years,

      (b) under the age of twenty-five years and following and making satisfactory progress in a course of instruction approved by the Minister,

      (c) under the age of twenty-one years and prevented by physical or mental incapacity from earning a livelihood,

      (d) over the age of twenty-one years and prevented by physical or mental incapacity from earning a livelihood, where the incapacity occurred before the child attained the age of twenty-one years, or after the age of twenty-one years and before the age of twenty-five years while following and making satisfactory progress in a course of instruction approved by the Minister, or

      (e) a child referred to in paragraph (a), (b), (c) or (d) who is married and who is financially dependent on a recipient;

``payment review period'' means the period commencing on April 1 in the previous fiscal year and ending on March 31 in the current fiscal year;

(3) The relevant portion of the definition ``orphan'' in subsection 2(1) reads as follows:

``orphan'' means

      . . .

      (c) a child of divorced, separated or unmarried parents who is bereft by death of a parent who was, at the time of death, receiving an additional allowance in respect of that child, and

(4) New.

Clause 70: (1) The relevant portion of subsection 4(3) reads as follows:

(3) The monthly allowance payable under this section to a veteran, widow, widower or orphan in a current fiscal year shall be computed as follows:

    . . .

    (c) determine the monthly allowance payable to the veteran, widow, widower or orphan by subtracting from the applicable monthly allowance ceiling determined under paragraph (b) the current monthly benefits, if any,

      . . .

      (ii) payable under the Pension Act or any enactment prescribed by regulations made under section 25 or under similar or equivalent laws of the country in whose forces the veteran served, but not including any monthly benefit payable

(2) The relevant portion of subsection 4(5) reads as follows:

(5) Notwithstanding anything in this section, the allowance payable under this section to a surviving spouse or orphan may be paid to

    . . .

    (b) an orphan of a recipient if that orphan resides outside Canada and if that recipient was, at the time of his death, receiving an additional allowance in respect of the child.

(3) Subsection 4(8) reads as follows:

(8) Where the Minister is satisfied that a recipient and his spouse are not residing together as a result of one or both of them having to reside in a treatment or care facility or as a result of such other circumstances as are prescribed by regulations made under section 25, the Minister may direct that the recipient and spouse be treated in the same manner as if they were persons referred to in subsection (6) and each person had one-half of the aggregate of the income and benefits of both persons, and in that case, where the Minister deems appropriate, the Minister shall apportion the allowances payable to them having regard to the circumstances of each of them and any dependent children involved.

Clause 71: (1) The relevant portion of subsection 7(1) reads as follows:

7. (1) For the purposes of this Act, ``income'', of a person for a calendar year, has the same meaning as in section 13 of the Old Age Security Act except that, for the purposes of this Act,

    (a.1) there shall be included in income of the person for the year any payment made to the person or the person's spouse, if any, in the year under

      . . .

      (iii) the Penitentiary Inmates Accident Compensation Regulations, and

(2) Subsection 7(2) reads as follows:

(2) Despite subsection (1), if it appears to the Minister that any amendment to the Income Tax Act or the regulations made under that Act or to the Old Age Security Act would result in a significant change in the amount of any allowance payable in respect of any class of persons under this Act, the Minister may, with the approval of the Governor in Council, make orders to alleviate for the purposes of this Act the effect of the change by deeming revenue specified in the orders or a part of that revenue to be or not to be, as the case may require, income of a person referred to in subsection (1).

Clause 72: Subsection 8.1(5) is new. Subsections 8.1(1.1) to (4) read as follows:

(1.1) Where the monthly income of an applicant and spouse, if any, at the time of the application is less than one twelfth of the income of the applicant and spouse, if any, for the base calendar year, the applicant may, in addition to making the statement of income required by subsection (1), file with the Minister a statement of estimated income of the applicant and spouse, if any, for the calendar year in which the application is made.

(1.2) Where an applicant files a statement of estimated income referred to in subsection (1.1), the income of the applicant and spouse in respect of the base calendar year shall, for the purpose of determining whether an allowance should be awarded and the amount of such an allowance, be deemed to be the amount obtained by

    (a) dividing the income computed in respect of the applicant and spouse for the part of the calendar year commencing on the first day of the month in which the application is made by the number of months in that part of that calendar year; and

    (b) multiplying the quotient obtained under paragraph (a) by 12.

(2) Where in any current fiscal year a recipient or a recipient's spouse experiences a change in income that is of an ongoing and continuing nature and that results in a loss or reduction of income equal to or greater than such amount as is prescribed by regulations made under section 25, the recipient may, not later than the end of the fiscal year next following the current fiscal year and in addition to making the statement of income required by subsection (1), file with the Minister a statement of estimated income, if any, of the recipient and spouse for the calendar year in which the loss or reduction of income occurred, in which case the income for the base calendar year in respect of the recipient and spouse for the purposes of calculating the allowance payable to the recipient for the remainder of the current fiscal year shall be deemed to be the amount obtained by

    (a) dividing the income computed in respect of the recipient and spouse for the part of the calendar year commencing on the first day of the month in which the loss or reduction of income occurred by the number of months in that part of that calendar year, and

    (b) multiplying the quotient obtained under paragraph (a) by 12.

(3) Where, in the previous fiscal year or in the three month period immediately preceding the commencement of the previous fiscal year, a recipient or a recipient's spouse experiences a change in income that is of an ongoing and continuing nature and that results in a loss or reduction of income equal to or greater than an amount prescribed by regulations made under section 25, the recipient may, not later than the end of the current fiscal year and in addition to making the statement of income required by subsection (1), file with the Minister a statement of estimated income, if any, of the recipient and spouse for the calendar year in which the loss or reduction of income occurred, in which case the income for the base calendar year in respect of the recipient and spouse for the purposes of calculating the allowance payable to the recipient for the current fiscal year shall be deemed to be the amount obtained by

    (a) dividing the income computed in respect of the recipient and spouse for the part of the calendar year commencing on the first day of the month in which the loss or reduction of income occurred by the number of months in that part of that calendar year, and

    (b) multiplying the quotient obtained under paragraph (a) by 12.

(4) Where an allowance has been calculated on the basis of a statement of estimated income filed by a recipient under this section, the recipient shall, where any subsequent increase of an ongoing and continuing nature in the income for the current fiscal year of the recipient or the recipient's spouse occurs, forthwith notify the Minister of the increase and the allowance for the remainder of the current fiscal year shall be calculated as if the income for the base calendar year in respect of the recipient and the spouse, if any, were the amount obtained by

    (a) dividing the income computed in respect of the recipient and spouse for the part of the calendar year commencing on the first day of the month in which the increase of income occurred by the number of months in that part of that calendar year, and

    (b) multiplying the quotient obtained under paragraph (a) by 12.

Clause 73: The heading before section 17 reads as follows:

ASSIGNMENT OF ALLOWANCE

Clause 74: Subsection 17(1) reads as follows:

17. (1) Except as provided in this Act, no allowance is subject to assignment, alienation or transfer by the recipient or to seizure in satisfaction of any claim against him.

Clause 75: (1) to (4) Subsections 18(1.01) and (3) are new. Section 18 reads as follows:

18. (1) Where a person has received or obtained an allowance payment to which the person is not entitled, the amount thereof shall constitute a debt due to the Crown, and

    (a) the person is liable to repay to Her Majesty in right of Canada an amount equal to that amount; and

    (b) the amount or such portion thereof as is prescribed by regulations under section 25 shall be deducted and retained from any further allowance payment due to the person.

(1.1) Where an allowance has been paid in respect of any fiscal year and it is subsequently determined that the income of the recipient and, if applicable, the recipient's spouse, for the base calendar year calculated as required by this Act, in this subsection referred to as the ``actual income'', is not the same as the income of the recipient, in this subsection referred to as the ``shown income'', calculated as required by this Act on the basis of a statement required or permitted by section 8.1 to be made or filed by the recipient, the following adjustment shall be made:

    (a) if the actual income exceeds the shown income, any amount by which the allowance paid to the recipient for months in that fiscal year exceeds the allowance that would have been paid to the recipient for those months if the shown income had been equal to the actual income shall be considered an excess payment amount and shall constitute a debt due to the Crown, and

      (i) the recipient is liable to repay to Her Majesty in right of Canada an amount equal to the excess payment amount, and

      (ii) the excess payment amount or such portion thereof as is prescribed by regulations made under section 25 shall be deducted and retained from any further allowance payment due to the recipient; or

    (b) if the shown income exceeds the actual income, there shall be paid to the recipient any amount by which the allowance that would have been paid to the recipient for months in that fiscal year if the actual income had been equal to the shown income, exceeds the allowance paid to the recipient for those months.

(1.2) Notwithstanding subsection (1) or (1.1), a payment or excess payment referred to in that subsection shall not constitute a debt due to the Crown unless

    (a) the payment or excess payment occurred in the payment review period; or

    (b) the payment or excess payment was the result of a wilful misrepresentation made by the recipient.

(2) Notwithstanding subsection (1) or (1.1), where a person has received or obtained an allowance payment to which the person is not entitled or an allowance payment in excess of the amount of the allowance payment to which the person is entitled as calculated under section 4 or 5 and the Minister is satisfied that

    (a) the amount of the allowance payment or the excess amount of the allowance payment cannot be collected within the reasonably foreseeable future,

    (b) the administrative costs of collecting the amount of the allowance payment or the excess amount of the allowance payment are likely to equal or exceed the amount to be collected,

    (c) repayment of the amount of the allowance payment or the excess amount of the allowance payment will cause hardship to the debtor, or

    (d) the amount of the allowance payment or the excess amount of the allowance payment is the result of an administrative error, delay or oversight on the part of a public servant,

the Minister may, unless that person has been convicted of an offence in connection with the receiving or obtaining of the allowance payment, remit all or any portion of the amount of the allowance payment or of the excess amount of the allowance payment, as the case may be.

Clause 76: The heading before section 19 reads as follows:

ANNUAL ADJUSTMENT OF ALLOWANCES

Clause 77: Subsection 20(1) reads as follows:

20. (1) Notwithstanding anything in subsection 19(1), the income factor applicable by virtue of that subsection for a month in any payment quarter shall not be less than the income factor applicable for any month in the three month period immediately before that payment quarter.

Clause 78: Subsections 22(2) and (3) read as follows:

(2) In respect of the increases in the maximum amount of the Guaranteed Income Supplement provided for by subsection 10(1.4) of the Old Age Security Act, chapter O-6 of the Revised Statutes of Canada, 1970, subsection (1) shall be applied so as to reflect those increases only in relation to Class 1 of column I of the schedule.

(3) Subsection (1) shall not apply in respect of the increase in the maximum amount of the Guaranteed Income Supplement provided for by subsection 12(5) of the Old Age Security Act.

Clause 79: Section 23 and the heading before it read as follows:

OFFENCE AND PUNISHMENT

23. (1) Every person who, for the purpose of obtaining an allowance either for himself or for any other person, knowingly, in any application or otherwise, makes a false or misleading statement or fails to disclose any material fact is guilty of an offence and liable on summary conviction to a fine of not less than fifteen dollars and not more than one hundred dollars or to imprisonment for a term not exceeding three months or to both.

(2) Any complaint or information in respect of an offence under this Act or the regulations may be heard, tried or determined in the place in which the offence was committed or the matter of the complaint or information arose or in any place in which the accused is apprehended or happens to be.

(3) A prosecution for an offence under this Act or the regulations may be instituted at any time within but not later than one year after the time when the subject-matter of the prosecution arose.

Clause 80: (1) to (5) The relevant portion of section 25 reads as follows:

25. The Minister may, with the approval of the Governor in Council, make regulations for carrying the purposes and provisions of this Act into effect and, without restricting the generality of the foregoing, may make regulations

    (a) prescribing the manner and form of making applications for allowances and the information and evidence to be furnished in connection therewith;

    . . .

    (c) prescribing circumstances in which a recipient and his spouse are not living together for the purposes of subsection 4(8);

    . . .

    (e) for determining whether any veteran is unable to maintain himself by following his former ordinary occupation or is capable of taking light or intermittent employment;

    (e.1) prescribing the amount of a loss or reduction of income for the purposes of paragraph 8.1(2)(b) or (3)(b);

    . . .

    (i) prescribing for the purposes of section 18 the portion of any amount that may be deducted and retained from any allowance payment due to a recipient;

    . . .

    (m) prescribing a fine or a term of imprisonment that may be imposed on summary conviction as a punishment for contravention of any regulation, but a fine so prescribed shall not exceed fifteen dollars and a term of imprisonment so prescribed shall not exceed one month;

Clause 81: The heading before section 29 reads as follows:

POWERS OF MINISTER

Clause 82: New.

Clause 83: New.

Clause 84: Subsection 30(1.1) is new. Subsection 30(2) reads as follows:

(2) Any information obtained by an officer or employee of the Department pursuant to this Act or the regulations may be communicated to an officer or employee of the Department of Human Resources Development for the purposes of administering this Act or the Old Age Security Act.

Clause 85: Subsection 32(1) reads as follows:

32. (1) Where an applicant for an allowance or a recipient is dissatisfied with any adjudication affecting him, other than an adjudication under subsection 18(2) or on an appeal under subsection (2) of this section, he may, in accordance with the regulations, apply to an officer or employee of the Department designated by the Minister for the purpose for a review of the adjudication.

Clause 86: New.

Clause 87: New.

Clause 88: New.

Clause 89: (1) The relevant portion of subsection 37(3) reads as follows:

(3) A Canadian veteran of World War I or World War II is any former member of His Majesty's Canadian forces

    (a) who served during World War I or World War II and

      (i) served in a theatre of actual war,

      (ii) is in receipt of a pension for an injury or disease incurred or aggravated during his service in those forces or is declared to have been eligible for, or awarded, such a pension subsequent to his death, or

      (iii) has accepted a commuted pension; or

(2) Subsection 37(4) reads as follows:

(4) An allied veteran is

    (a) any former member

      (i) of any of His Majesty's forces who served during World War I or World War II,

      (ii) of any of the forces, other than resistance groups, of any of His Majesty's allies who served during World War I or World War II, or

      (iii) of any of the forces, other than resistance groups, of any power associated with His Majesty in World War I who served during World War I,

    who was domiciled in Canada at the time he joined that force for the purpose of War and

      (iv) served in a theatre of actual war,

      (v) is in receipt of a pension for an injury or disease incurred or aggravated during his service in that force or is declared to have been eligible for, or awarded, such a pension subsequent to his death,

      (vi) has accepted a commuted pension, or

      (vii) served in the United Kingdom during World War I.

(3) The relevant portion of subsection 37(7) reads as follows:

(7) A Canadian Forces veteran is a person who,

    . . .

    (b) is

      (i) in receipt of a pension under the Pension Act, or

      (ii) declared to have been eligible for, or awarded, a pension under the Pension Act subsequent to his death,

    having become eligible for that pension by virtue of section 5 of the Veterans Benefit Act, 1951, or by virtue of section 5 of the Veterans Benefit Act, 1954.

(4) The relevant portion of subsection 37(7.3) reads as follows:

(7.3) A merchant navy veteran of World War I or World War II is

    (a) any person who, during World War I or World War II, served on board a Canadian ship while it was making

      . . .

      (iii) a home-trade voyage any part of which went outside the territorial waters of Canada and was

(5) The relevant portion of subsection 37(10) reads as follows:

(10) For the purposes of this section,

Women's Royal Naval Services and the South African Military Nursing Service (Benefits) Act

Clause 91: The heading before section 3 is new. Section 3 reads as follows:

3. Every person domiciled and resident in Canada who since the 10th day of September, 1939, served as a member of the Women's Royal Naval Services or as a member of the South African Military Nursing Service outside Canada and who, at the time that such person became a member of either of such services was domiciled in Canada, shall on termination of such service be deemed to be

    (a) a ``veteran'' as defined in

      (i) paragraph (d) of section 2 of the Veterans' Land Act,

      (ii) paragraph (k) of subsection (1) of section 2 of the Veterans Insurance Act,

      (iii) subparagraph (ii) of paragraph (m) of section 2 of the Veterans Rehabilitation Act, and

      (iv) paragraph (d) of section 4 of the War Veterans Allowance Act,

    and as such entitled to all rights, privileges and benefits under those Acts respectively, subject to all conditions as are in such Acts respectively contained;

    (b) a person who

      (i) ``served in the naval, army or air forces of His Majesty'' as that expression is used in section 5 of the Department of Veterans Affairs Act,

      (ii) served ``on active service in any of the naval, army or air forces of His Majesty other than those raised in Canada'' as that expression is used in section 22 of the War Service Grants Act,

      (iii) has ``served in the naval, army or air forces of the United Kingdom'' as that expression is used in section 51 of the Pension Act or has ``served in the naval, army or air forces of any of the said members of the British Commonwealth of Nations'' as that expression is used in section 52 of the Pension Act,

      (iv) is a veteran within the meaning of paragraph (b) of subsection (2) of section 28 of the Civil Service Act,

      (v) had ``service in His Majesty's forces'' as that expression is used in subparagraph (i) of paragraph (i) of section 2 of the Reinstatement in Civil Employment Act,

      (vi) falls within the class described as ``members of the Canadian naval, military and air forces while in the Canadian Active Service Forces'' as that expression is used in paragraph (t) of section 4 of the Income War Tax Act,

    and as such entitled to all rights, privileges and benefits under those Acts respectively, subject to all conditions as are in such Acts respectively contained.

Appropriation Act No. 10, 1964

Clause 92: Vote 58a provided for the designation of ``special duty areas'' and for the right of persons serving in those areas to disability pensions relating to that service.